In a large bowl, whisk together the warm milk, yeast, and a pinch of sugar. Let this mixture sit at room temperature for about 5-10 minutes until it becomes foamy.

Once foamy, whisk in the granulated sugar, egg, vanilla extract, salt, and melted butter into the yeast mixture until smooth.

Gradually add the all-purpose flour, one cup at a time, mixing until a soft dough forms. Knead the dough on a floured surface for about 5-7 minutes until it’s smooth and elastic.

Place your kneaded dough in a greased bowl, turning it to coat all sides. Cover the bowl and let it rise in a warm spot until it has doubled in size, around 1 to 1.5 hours.

After the dough has risen, punch it down gently to release any air. Roll it out on a floured surface to about 1/4 inch thick and cut the dough into 2-3 inch squares.

Heat the vegetable oil in a deep pot or fryer to 350°F (175°C). Carefully slide the dough squares into the hot oil in batches, frying for 1-2 minutes on each side until golden brown.

Once golden brown, remove the fried beignets from the oil and let them drain on paper towels. Generously dust them with powdered sugar while they’re still warm.